Suppose That the Nominal Wage, the Expected and Actual Price

Multiple Choice

Suppose that the nominal wage, the expected and actual price levels, and the expected and actual inflation rates for a hypothetical economy in 2016 are presented in the following table.

Given the data, the economy is at an unemployment rate:

A) that is greater than the natural rate of unemployment.
B) that is less than the natural rate of unemployment.
C) such that there is no cyclical unemployment.
D) that is equal to the natural rate of unemployment.